Economic Situation

64.

Mr. Leadbitter
asked the Chancellor of the Exchequer what proposals he now has for reducing or stabilising prices, controlling inflation and dealing with the economic situation.

Mr. Maurice Macmillan
The main factor generating the excessive rate of advance in prices is the rate of increase of wage costs. Our strategy must therefore be directed to the progressive moderation of present rates of wage settlement. As to the general economic situation, I would refer the hon. Member to my right hon. Friend's statement this afternoon.